I have twice now rec'd this message, first time I took it in and they showed me to clear cache, I uninstalled some apps. but now 2 weeks later I'm getting the message, I have 1.84 total space and 1.78 available on the SD card, 6.46 total and 5.64 available internal. 748mb total and 527 available total memeory. Went to my local verizon store again yesterday. They advised a factory reset...What?? Is there any other solution?

And second question, how do I do this and not lose my contacts, are they stored on the SD?

When the white HBOOT screen appears, use the volume button to move down to “RECOVERY.”

Press the Power button to select “RECOVERY.”

When the Green Arrows and\or triangle and exclamation appears, hold the Volume Up and Power button at the same time.

Using the volume button, scroll down to “Wipe cache partition” and select it (power button).

Select "Reboot system now"

Now you have enough space to download and install the additional update. Verizon released 2 updates for the HTC Incredible, I'm guessing you only got one. Go to Settings> About Phone> Software> Build - 4.06 right? there is a 4.08 that (allegedly) resolves this Low on Space problem.

To get that update immediately (recommend connecting to WiFi for the download):

The best way to avoid this issue is to check on apps that use up a lot of "data" storage when you look at the application details under Manage Applications. Go to Menu->Settings->Applications->Manage Applications. Then tap any application to see how much app storage, data storage and cache storage your app is using.

If you primarily sync with google contacts or exchange contacts, or have phone contacts and use verizon backup assistant, then you should check out the size of your Contacts Storage. Over time this can grow a lot, and if you "clear data" on it, it will rebuild itself and the size will be much smaller. HOWEVER remember, DONT do clear storage on contacts storage if you use phone contacts and have not backed up your contacts.

Also look at Google Maps, HTC Gallery App, HTC Mail App, Market App. For all of these the Cache has a potential to grow a lot. So clearing these helps.

Also try and see if there are any bookmarks that you can delete in the Browser. Clearing Browser cache and history will also help.

i'm baaack! lol.. i got the update to download, but it refuses to install. battery level is fine, it just gets stuck on the waiting to install screen and never fully does. i've tried to restart the phone, but when i check the software, it's back on 4.06 even though it's tried to install the 4.08 three times now.

The software update should not be this hard. I can't imagine how upset I would be after all the steps you have already completed. I have another way to fix this that I've had tremendous success with, please try a hard reset. Here's a link to the reset.

Please back up the device first. Once the device has been programmed please search for the software update. Menu> Settings> about phone> System updates.